Story Highlights

Delaware Gov. Jack Markell and Nevada Gov. Brian Sandoval on Tuesday signed the country's first gambling compact that will allow people in both states to play online poker against each other.

The governors described the agreement as the first of its kind and said they hoped other states, like New Jersey – the only other to have so far legalized online gambling – would join.

Unlike casino expansion, in which one state competes with another, the governors said the new opportunities could increase revenues for all states involved.

"I consider this a landmark intersection in the road of gaming history," Sandoval said at a signing ceremony at the Carvel state office building in Wilmington.

The deal comes as increasing competition in the region, especially in Maryland, has hurt Delaware's brick-and-mortar casinos, which historically have provided the state with a significant amount of its annual revenues.

The technology is not yet developed, so it will take some time for multistate online poker to be up and running, the governors said. But the agreement signed on Tuesday gets "the legal piece" taken care of, Markell said, adding he would like to get it running as quickly as possible.

The agreement with Nevada, currently limited to poker, is "a natural next step to make sure our gaming industry remains on the cutting edge," Markell said. A bigger pool of players will be more attractive to potential players, Markell said.

People would need to be physically present in either state to participate, no matter where they live, the governors said. Sandoval marveled at how a person in Ely, Nev., would be able to sit at a virtual poker table with someone in Seaford.

"There's a great opportunity here," Sandoval said.

The Delaware Gaming Competitiveness Act of 2012 allowed for Internet gambling, as well as parlay football bets in venues outside of casinos, and the creation of a statewide Keno network. Online gambling in Delaware started in November.

The new agreement will allow people in both states to compete for the same pot of winnings, Markell said. Each state from which the players hail will keep the revenues, Sandoval said. It was unclear how much revenue the new offering is expected to generate.

Sandoval said his state's online gambling legislation was passed one year ago, 24 hours after it had been introduced, making it the fastest moving law to be approved in Nevada's history.

Rep. Helene Keeley, D-Wilmington, called it "a step in the right direction," along the line of interstate compacts in agriculture and biotechnology. She said 10 states are considering legislation for online gambling.

"This is something that is coming of age," Keeley said.

Tom Cook, state finance director, said the offerings will appeal to people from out of state who are visiting Delaware, notably at the beaches in the summer.

Sandoval said he hopes it will serve as a model for multistate collaboration. He presented Markell with a Nevada license plate he signed in silver ink, "To Jack Markell, proud to have the First State as our first partner."

"The agreement we've signed today provides the tools and the structure necessary for us to pioneer this expanding industry together, as states and as partners," Sandoval said.

A portion of gambling revenues go toward gambling addiction problems. Markell said of gambling addiction, "it's not been so significant" since Delawareans have had more options, including those in adjoining states.

Sandoval, before he was governor, was chairman of the Nevada Gaming Commission. He has been mentioned as a possible future candidate for national office.

Markell noted that he and Sandoval met on the board of Jobs for America's Graduates, of which Markell is chairman. They have struck up a friendship, and their partisan differences – Sandoval is a Republican – do not come up in their conversations, Markell said.